Guidance Trumps Results...Again

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 9 May 2023

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

Sometimes it really doesn't matter if your quarterly profits were higher than Wall Street was expecting. (00:21) Bill Barker discusses: - Shares of PayPal falling close to a 5-year low after guidance for the current quarter was low - How PayPal's CEO search is affecting shareholders - Under Armour's continued struggles and less-than-impressive record of share buybacks (14:40) If college tuition payments are in your future, are you ready? Alison Southwick and Robert Brokamp talk with Megan Brinsfield of Motley Fool Wealth Management about different scenarios for paying for college. Companies discussed: PYPL, UA, UAA Host: Chris Hill Guests: Bill Barker, Alison Southwick, Robert Brokamp, Megan Brinsfield Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Motley Fool Wealth Management (“MWFM”) is an SEC registered investment adviser. MWFM, an affiliate of The Motley Fool LLC (“TMF”) is a separate legal entity, and all financial planning and discretionary asset management services for our clients are made independently by the financial planners and asset managers at MFWM. No TMF analysts are involved in the investment decision making or daily operations of MFWM. MFWM does not attempt to track any TMF services. All investments involve risk, including loss of principal. Past performance does not guarantee future results. Certain statements may be deemed forward-looking. There is not guarantee that these projections or forward-looking statements will come to fruition. This discussion is for informational and illustrative purposes only and should not be construed as investment advice or recommendations. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We've got the latest examples of guidance outweighing results.
0:09.2	Motley Fool Money starts now.
0:11.6	I'm Chris Hill, joining me in studio today, Motley Fool's Senior Analyst, Bill Barker.
0:25.0	Thanks for being here.
0:26.4	Thanks for having me.
0:30.2	We're going to talk about two stocks that I own and my heavy size should indicate how those stocks are doing today.
0:35.2	We're going to start with PayPal.
0:36.8	First quarter profits came in higher than expected, and absolutely nobody cares because guidance for the current quarter was apparently not what Wall Street wanted to hear.
0:46.2	And shares of PayPal are not only down around 12%, they are within pennies of a five-year low.
0:54.7	Yeah, well, it's a growth stock.
0:57.5	It's one that's visited a lot of interesting places on the chart, and I guess as a shareholder, the level of interestingness of today's visited places, not the one you wanted to visit.
1:12.0	Yeah, sorry about that.
1:13.6	That's okay.
1:14.6	I am wondering, however, if you think this move is warranted, if you think this sell-off is warranted,
1:21.6	I will just point to one part of the business, which is the question of who the CEO is, because Dan Schoelman, the CEO, announced in early February that he was going to step down.
1:34.4	They were going to have a new CEO in place by the end of the year, and he said on the call, the board has formed a subcommittee, and we're working with a leading search firm, which I don't know.
1:48.1	Since they announced this in early February, I would assume that by late February, they were already doing both of those things.
1:54.5	This is one part of the business.
1:56.4	Put aside the numbers.
1:57.4	Put aside what's happening with the gross margins and everything else.
2:01.4	Maybe speed up the CEO search.
2:03.6	Well, it takes a while to find top men to put on that kind of search, doesn't it?
	...

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